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Charlie Munger, Berkshire Hathaway Vice Chairman: Not following Tesla into Bitcoin

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He doesn't know whether Tesla or Bitcoin is worse.

Source: Sina Technology

Original title: "Munger: Not sure which is worse, Tesla or Bitcoin"

Charlie Munger, vice chairman of Berkshire Hathaway and longtime business partner of Warren Buffett, on Wednesday dismissed the surge in Tesla's stock price and the recent bitcoin boom, according to reports.

In an interview at the Daily Weekly's annual shareholder meeting, Munger said he didn't know whether it was crazier to hit $50,000 for Bitcoin or a $1 trillion fully diluted enterprise value for Tesla.

'I feel the same way about the choice between fleas and lice,' he said. 'I don't know which is worse.'

Tesla shares have surged 743% over the past year, but are down 3% since the start of 2021. Tesla's market capitalization is currently $689 billion. The cryptocurrency's price has soared over the past week, reaching more than $50,000, after it announced it had bought $1.5 billion worth of bitcoin.

Munger was also asked about the biggest threat to the banking industry, whether it was bitcoin or digital wallets like Apple Pay and Square.

He said: "I don't know what the future will be like in the banking industry, I also don't know the payment system will be how to develop in the future. I do think, however, a well-run Banks, has a great contribution to civilization, the world's central bankers like to control their banking system and money supply. Therefore, I don't think the currency will eventually become a popular medium of exchange all over the world, its volatility is too big, can't well play the role of medium of exchange. And it's really like a kind of artificial gold substitutes. Because I never buy gold, so I won't buy COINS."

Munger also advises others to follow his example. He added: "Bitcoin reminds me of what Oscar Wilde said about fox hunting, which he described as" the practice of taciturn men chasing the inedible."

At the event, Munger also had a warning for novice investors, many of whom he believes are being lured into a trading bubble by apps like Robinhood.